Wxi iph study 2018

APPLIED WEALTH INTELLIGENCE

WEALTH-X INSTITUTE

UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

WEALTH-X INSTITUTE

UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

NEW YORK 142 W. 36TH STREET, 12TH FLOOR NEW YORK, NY 10018 +1 877 887 8454 LONDON NUFFIELD HOUSE 41-46 PICCADILLY LONDON W1J 0DS UNITED KINGDOM +44 020 3745 3000 SINGAPORE 8 MARINA BOULEVARD, #05-02 MARINA BAY FINANCIAL CENTRE SINGAPORE 018981 +65 6832 5169

INTRODUCTION SYNOPSIS One of the most important elements of research when engaging with the Ultra wealthy is to understand their interests, passions, and hobbies. When an individual has previously transacted with a private sector company, or supported a non-profit organization financially or otherwise, this is taken to represent some level of affinity for a brand or a cause. Further, the magnitude of spend or giving will also naturally be used as a proxy for the level of interest.

In detailing the interests, passions and hobbies of the UHNW individual, Wealth-X aims to provide more insight into predilections that may or may not be related to aspects already known about a person. Together, these characteristics and pursuits may function as an explanation of what ‘makes someone tick.’

In previous World Ultra Wealth Reports we have presented the most popular interests among the UHNW, but only at a high level. In this paper we will take a deeper look, comparing the rankings by region, age group, and gender and then examining the breakdown of subcategories in Art, Music, Sports, Animals, and Collectibles.

METHODOLOGY Hobbies and interests are sometimes made known by the individual, for example, in an interview. In many cases, however, we infer an interest in a particular pastime, activity, or leisure pursuit on an evidential basis. In the Wealth-X dossier we may provide additional detail that gives more color to the individual’s level of interest, but for the purposes of this analysis, we treat the interest in a binary fashion. For free text descriptions of an interest, we extracted the subcategories and allocated them accordingly if possible, or labeled the interest as ‘general’ (e.g. ‘enjoys music’). Further, individuals may have multiple interests in the same main category.

The subdivisions of the Music category differentiate musical genres, instruments, and practitioners. Within Art, the broad periods and different art mediums were identified.

In the 2017 World Ultra Wealth Report, certain categories were excluded from the global Top 10 IPH table, namely: Business, Finance, Technology, Family, Real Estate, and Travel.

These were regarded as more problematic categories which do not sit as comfortably under the label of an ‘interest.’ For completeness, they are included in this study.

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

1

CONSIDERATIONS The analysis is based on completed dossiers where IPH are known, and it reflects different levels of coverage by country. As such there is a known bias towards regions which have a higher number of records relatively to the theoretical total UHNW population, for example Europe and North America.

The extraction and assignment of subcategories from general descriptions of an interest was carried out as far as possible. However, some general statements relating to particular artists (Art and Music) and art movements (Art) were not accorded to a category as they were either not indicative of a general interest in the subcategory, or they could not be placed appropriately.

The ranking by region were organized according to the geographic structure of the Wealth-X data, cognizant that the continental groupings differ in cultural heterogeneity. However, this avoids the aforementioned bias from different levels of completeness by region even though the sample sets vary in size. Blank values occur at the regional level where a particular interest does not feature in the Top 30 globally.

SUMMARY OF FINDINGS REGIONAL

The Top 30 interests, passions, and hobbies globally are presented, followed by comparative values by region. The variance figure shows the percentage range between the highest and lowest values and effectively represents a measure of ‘universality.’ Relative to other regions: ¡ North American UHNW have the highest incidence for Philanthropy, Outdoors, Public Speaking, Writing, and Law; ¡ Latin American UHNW are the highest for Aviation, Family, Engineering, Environment, and Economics; ¡ European UHNW score the highest for Travel, Art, Music, Vehicles, Food, Science, Collectibles, and Languages; ¡ Middle Eastern UHNW are the highest for Business, Finance, Education, Technology, Real Estate, Health and Wellness; ¡ African UHNW are the highest for Politics, Vehicles, Reading, and Religion; ¡ Oceanian UHNW score the highest in Sports, Boating, and Animals; ¡ Asian UHNW did not have any maximum values.

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

2

A general observation is that the IPH with the lowest variance or greatest universality are interests that one would expect to transcend cultural differences: Business, Sports, Finance, Health and Wellness, Religion, and Writing. The interest with the highest variance across regions was Outdoors, with extremes between North America and the Middle East.

Conversely, several IPH appeared within a region’s top 30 but not in the global ranking. Most noticeably, Luxury Lifestyle in the Middle East and Africa; Film in North America and Asia; Fashion in Europe; Media in the Middle East; and Agriculture in Oceania, Asia, and Africa.

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

3

TOP 30 INTERESTS Rank

Hobby Name

% of all UHNW

1

Business

56.9%

2

Philanthropy

38.6%

3

Sports

33.0%

4

Finance

28.3%

5

Education

17.8%

6

Outdoors

17.3%

7

Public Speaking

15.2%

8

Technology

14.6%

9

Aviation

14.5%

10

Real Estate

14.4%

11

Politics

13.9%

12

Travel

13.8%

13

Family

13.2%

14

Art

9.2%

15

Music

8.9%

16

Health and Wellness

8.9%

17

Engineering

8.9%

18

Vehicles

8.6%

19

Writing

8.1%

20

Environment

7.6%

21

Food

7.2%

22

Economics

7.2%

23

Science

7.1%

24

Animals

7.0%

25

Reading

6.8%

26

Collectibles

6.8%

27

Boating

6.7%

28

Law

6.1%

29

Languages

5.0%

30

Religion

5.0%

(Global)

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

4

0%

100%

1 BUSINESS

50.8%

63.8% 59.5%

79.1% 70.3% 62.6% 52.9%

TOP 30 INTERESTS (by Region) 1-15

2 PHILANTHROPY

26.0% 23.8% 21.2% 28.6% 30.2% 32.4%

3 SPORTS

32.6% 29.4% 38.4% 27.7% 34.3% 28.8% 38.9%

4 FINANCE

27.2% 27.4% 29.4% 37.6% 29.7% 26.0% 28.2%

North America Latin America and the Caribbean Europe

5 EDUCATION

Middle East and North Africa Africa Asia Oceania

6 OUTDOORS

Variance *The variance figure is the percentage range between the highest and lowest value in that category.

7 PUBLIC SPEAKING

19.0% 16.5% 13.1% 21.6% 15.2% 19.5% 13.0%

56%

50.5% 139%

41%

45%

66%

19.0%

16.5% 13.1% 21.6% 15.2% 19.5% 13.0%

401%

18.0% 13.5% 11.0% 14.8%

64%

12.2% 13.2%

8 TECHNOLOGY

9 AVIATION

15.6% 9.8% 12.9% 17.7% 10.1% 13.5% 13.0%

80%

18.0% 18.1% 11.9% 10.0%

143%

7.4% 12.0%

10 REAL ESTATE

12.0% 13.3% 14.8% 11.1% 17.3% 17.5%

11 POLITICS

26.4%

16.0% 10.0% 9.6% 15.2%

139%

151%

13.9% 6.3%

12 TRAVEL

10.5%

20.5% 22.5% 12.4%

114%

12.3% 15.2%

13 FAMILY

9.9% 7.2% 9.9% 10.5% 11.7%

14 ART

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

5

8.9% 9.4% 11.9% 4.7%

29.2% 23.1%

304%

154%

8.7% 11.4%

15 MUSIC

8.9% 7.9% 11.1% 6.5% 9.1% 8.8%

72%

0% HEALTH AND WELLNESS

TOP 30 INTERESTS (by Region) 16-30

ENGINEERING

VEHICLES

100% 9.9% 6.8% 10.9% 7.6% 7.9% 10.7%

59%

7.0%

15.5% 9.8% 14.5% 6.7% 10.5% 8.3% 6.1% 8.1% 13.1% 11.9%

132%

114%

8.9% 8.0%

WRITING North America Latin America and the Caribbean Europe

ENVIRONMENT

Middle East and North Africa Africa

52%

6.2%

14.6% 10.5% 7.2%

136%

6.6% 9.7%

Asia Oceania

9.1% 6.6% 7.5% 6.1% 6.0% 7.1% 8.0%

FOOD

Variance *The variance figure is the percentage range between the highest and lowest value in that category.

ECONOMICS

SCIENCE

ANIMALS

6.0% 7.2% 9.4% 8.1% 7.1% 8.3% 5.5%

70%

5.1%

11.9% 9.8% 11.5% 6.7% 8.5% 5.8%

6.8% 6.9% 8.5% 4.4% 6.0% 7.5% 7.3% 7.5% 6.6% 8.0% 5.8%

136%

94%

109%

4.2% 8.7%

READING

6.2% 6.4% 7.1% 5.4%

80%

9.7%

COLLECTIBLES

BOATING

5.7% 7.2% 9.7% 6.5% 5.5% 6.6% 7.8% 5.4% 6.5% 12.4% 4.4% 6.0%

75%

190%

12.7%

LAW

7.4% 27%

5.8%

LANGUAGES

7.2% 9.8% 4.5%

118%

4.9% WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

6

RELIGION

5.6% 6.5% 33% 4.8%

AGE AND GENDER The following charts show the difference in UHNW interests according to three age groups: under 40 year olds, 40-70, and over 70s. The changing importance of each IPH can be observed between young adulthood, middle age, and old age. Philanthropy increases in old age and interest in Sports declines, as one would expect. However, some trends seem counter-intuitive: Real Estate as an interest increases in old age and Family reduces.

TOP 20 INTERESTS

(by Age Group)

40-70

<40

>70

Rank Hobby Name

% of all UHNW

Rank Hobby Name

% of all UHNW

Rank Hobby Name

% of all UHNW

1

Sports

50.4%

1

Business

60.9%

1

Business

55.2%

2

Business

48.7%

2

Sports

35.9%

2

Philanthropy

49.3%

3

Technology

29.6%

3

Philanthropy

34.3%

3

Sports

33.6%

4

Philanthropy

24.3%

4

Finance

32.2%

4

Finance

25.4%

5

Finance

22.7%

5

Outdoors

19.2%

5

Education

23.9%

6

Travel

22.0%

6

Public Speaking

18.9%

6

Outdoors

21.7%

7

Music

19.3%

7

Education

17.7%

7

Art

20.7%

8

Family

16.7%

8

Technology

17.4%

8

Politics

19.2%

9

Vehicles

15.3%

9

Aviation

15.4%

9

Aviation

18.3%

10

Public Speaking

13.9%

10

Travel

14.9%

10

Real Estate

15.7%

11

Real Estate

12.7%

11

Politics

14.5%

11

Travel

13.0%

12

Outdoors

12.6%

12

Real Estate

14.1%

12

Family

12.8%

13

Art

12.1%

13

Family

13.7%

13

Public Speaking

12.0%

14

Animals

11.7%

14

Art

12.7%

14

Writing

10.9%

15

Food

11.5%

15

Engineering

9.4%

15

Health and Wellness 10.2%

16

Languages

11.4%

16

Music

9.4%

16

Collectibles

9.9%

17

Fashion

10.0%

17

Health and Wellness 9.4%

17

Music

9.7%

18

Film

9.9%

18

Vehicles

9.0%

18

Technology

9.5%

19

Aviation

9.3%

19

Economics

8.5%

19

Engineering

9.0%

20

Reading

9.0%

20

Writing

8.4%

20

Science

8.5%

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

7

INTEREST TRENDS

(by Age group)

Philanthropy Sports Education Outdoors Technology Politics Travel Family Art Music

60%

50%

40%

30%

20%

10%

0% <40

40-70

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

8

>70

Gender differences in interests and hobbies follow somewhat stereotypical lines with the greatest differences between the sexes in Sports, Art, Fashion, and Animals.

TOP 20 INTERESTS

(by Gender)

FEMALE

MALE Rank Hobby Name

% of all UHNW

Rank Hobby Name

% of all UHNW

1

Business

61.0%

1

Philanthropy

47.5%

2

Sports

35.6%

2

Business

42.4%

3

Philanthropy

35.0%

3

Art

24.1%

4

Finance

30.7%

4

Sports

21.9%

5

Outdoors

18.7%

5

Family

20.3%

6

Education

18.4%

6

Education

19.7%

7

Public Speaking

16.2%

7

Travel

17.2%

8

Aviation

16.1%

8

Finance

17.1%

9

Technology

15.5%

9

Public Speaking

12.4%

10

Real Estate

15.4%

10

Technology

12.3%

11

Politics

14.8%

11

Animals

12.2%

12

Travel

14.1%

12

Health and Wellness 12.2%

13

Art

13.5%

13

Politics

12.0%

14

Family

13.1%

14

Music

11.8%

15

Engineering

10.0%

15

Fashion

11.5%

16

Vehicles

9.4%

16

Outdoors

11.5%

17

Music

9.0%

17

Real Estate

11.1%

18

Health and Wellness 9.0%

18

Collectibles

11.1%

19

Writing

8.2%

19

Writing

10.9%

20

Environment

8.0%

20

Food

9.0%

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

9

SUBCATEGORY BREAKDOWN Note that the percentage incidence for the subcategories are expressed as a proportion of the subset of UHNW who have an interest in the primary category, not the entire UHNW population.

Music had a high level of general interest without specifying particular genres, artists, or instruments.

Classical music far exceeds other genres, whereas piano and guitar were closely matched for popularity.

MUSIC (GENRE)

Rank Genre

% of UHNW who like Music

1

General

46.9%

2

Classical

12.7%

3

Rock & Roll

7.5%

4

Singing

7.4%

5

Jazz

5.8%

6

Opera

3.5%

7

Pop

1.9%

8

Country Music

1.8%

9

Dance Music

1.4%

10

Hip Hop

1.3%

MUSIC (INSTRUMENT)

Rank Genre

% of UHNW who like Music

1

Keyboard/Piano

9.0%

2

Guitars

8.4%

3

Drums

2.1%

4

Violin

1.8%

5

Saxophone

1.0%

6

Trumpet

0.7%

7

Cello

0.3%

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

10

Sports showed an eclectic mix of universally popular activities but also some culture or region-specific.

Aside from the global common denominator of football/soccer, the top ranking golf, skiing, and tennis make up the trinity of traditional â&#x20AC;&#x2DC;richâ&#x20AC;&#x2122; sports. Thereafter, traditionally American sports feature, largely due to the greater UHNW population overall and coverage in this region (see Considerations section).

SPORTS (SPORT)

Rank Hobby Name

% of UHNW who like sports

1

Golf

26.6%

2

Football/Soccer

15.3%

3

Skiing

14.1%

4

Tennis

11.6%

5

Basketball

8.1%

6

American Football

18.4%

7

Baseball

7.6%

8

Cycling

6.5%

9

Automobile Racing

5.1%

10

Swimming

4.8%

11

Horse Racing

4.7%

12

Cricket

3.1%

13

Hockey

2.7%

14

Rugby

2.6%

15

Water Sports

2.5%

16

Athletics

2.5%

17

Diving

2.3%

18

Polo

2.0%

19

Ice Hockey

1.9%

20

Martial Arts

1.8%

21

Surfing

1.6%

22

Squash

1.5%

23

Boxing

1.4%

24

Motorbiking

1.1%

25

Table Tennis

1.0%

26

Wrestling

0.9%

27

Volleyball

0.8%

28

Badminton

0.8%

29

Lacrosse

0.7%

30

Running

0.5%

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

11

Art subcategories were broken down by period and medium. Despite condensing movements from the renaissance to the mid-19th century to create three period categories, the preference for contemporary art is noteworthy. This may be explained by several factors, not least relative scarcity, and the interest in art beyond the aesthetic, i.e. as an investment vehicle.

In terms of medium, paintings and drawings are unsurprisingly at the top of the table. What is remarkable is the exceptional popularity of photography among the UHNW.

ART (PERIOD) % of UHNW who like Art

Rank Period 1

Contemporary (1946-)

9.0%

2

Modern (1860-1945)

8.4%

3

RenaissanceRomanticism (pre1860)

2.1%

ART (MEDIUM)

Rank Medium

% of UHNW who like Art

1

Painting/Drawing

24.7%

2

Photography

18.5%

3

General

10.1%

4

Sculpture

6.8%

5

Antiquities

2.7%

6

Antiques

1.4%

7

Pottery/Ceramics

1.4%

8

Prints

0.8%

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

12

The ranking for Collectibles shows Art as the clear outlier with watches proving more popular than jewelry for collecting. Stamps were marginally more popular than coins, and gun collections scraped into the top 10 ranking. Again, note that these are percentages based on the subset of UHNW individuals who like Collectibles.

COLLECTIBLES (TYPE)

Rank Type

% of UHNW who like Collectibles

1

Art

46.9%

2

Watches

12.7%

3

Antiques

7.5%

4

Jewelery

7.4%

5

Stones

5.8%

6

Stamps

3.5%

7

Books & Documents 1.9%

8

Coins

1.8%

9

Cars

1.4%

10

Guns

1.3%

Animals subcategories were limited, with a menagerie of more unlikely animals with very low incidences.

Horses are the most popular UHNW animal, perhaps in part explained by universality, with a passion for horses in North America, Europe, and the Middle East. Dogs are a close second, far eclipsing the popularity of their traditional rival Cats.

ANIMALS (ANIMAL)

Rank Type

% of UHNW who like Animals

1

Horses

39.6%

2

Dogs

33.0%

3

Cats

3.6%

4

Fish

3.1%

5

Birds

0.9%

WEALTH-X INSTITUTE UHNW INTERESTS, PASSIONS AND HOBBIES STUDY

13

ABOUT WEALTH-X Wealth-X is the leading global wealth information and insight business, partnering with prestige brands across the financial services, luxury, not-for-profit, and higher education industries.

We have developed the largest collection of hand-curated dossiers on ultra high net worth individuals available anywhere in the world today, as well as the world’s foremost high net worth market research team.

At Wealth-X, we believe in the power of applied wealth intelligence to drive success for our clients. Our proprietary data assets and specialized research capabilities help our clients understand and engage their target audience, minimize their risk, and make informed strategic decisions.

CONTACT contact@wealthx.com press@wealthx.com

© 2017 WEALTH-X PTE. LTD. ALL RIGHTS RESERVED. THIS PUBLICATION IS FOR YOUR INFORMATION ONLY AND IS NOT INTENDED AS AN OFFER, OR A SOLICITATION OF AN OFFER, TO BUY OR SELL ANY PRODUCT OR OTHER SPECIFIC SERVICE. ALL INFORMATION AND OPINIONS INDICATED ARE SUBJECT TO CHANGE WITHOUT NOTICE. WEALTHX.COM